Business Valuation FAQ's

The business valuation consultants in our Fraud, Forensic, & Litigation Services group use a systematic and comprehensive process to value business interests by performing an in-depth analysis, using relevant market data, and applying state-of-the-art techniques to ensure an accurate and defensible report.  Statutory authority, administrative rulings and judicial precedent must be monitored to ensure the report complies with legal and professional standards.

Why Would A Client Need a Business Valuation?

Determining the value of someone’s interest in a closely held business can be important for both tax and business reasons.  But determining value is not always easy since there is rarely an established market for closely held business interests.  An objective, professionally prepared business valuation is essential and can offer timely answers to critical questions that face owners of closely held companies.

Some common reasons a client would need a Business Valuation are:

• Estate and Gift Taxes - Planning, settlement and reporting
• Buy/Sell Agreements - Facilitate the exchange of shareholder interests in the event of death, disability, retirement or termination of employment
• Value Planning - Help business owners and managers with decisions that ultimately impact shareholder value
• Litigation Support - Attorneys rely on valuation opinions and reports to help substantiate claims and defend positions
• Marital Dissolution
• Any related party compensation or management agreement
• Planning for the Purchase or Sale of a Business – a process that maximizes the total return to the investor.  Valuation is the first step in developing a strategy to maximize the company’s value on divestiture or acquisition.
• Mergers and Acquisitions - Set realistic price expectations, fair selling price
• Capital Restructuring
• Dissenting Shareholder Suits
• Employee Stock Ownership Plans
• Bankruptcy
• S Corporation Elections
• Charitable Contributions
• Purchase Price Allocation

What types of reporting do you handle?

Engagements range from informal to very formal, depending on the type of report needed.  An engagement may call for a Calculations/Indication of Value Report, a Summary Report, a Detailed Report, or an Expert Testimony Report, depending on the purpose of the engagement and the report's intended use.  The result is always a professionally prepared report which includes financial and economic analysis, an explanation of the methodologies, and a value estimate of the company.

Q. What types of clients do HORNE valuation analysts serve?

Client size ranges from $1 million to approximately $150 million in revenues. We have served clients in over 25 states and territories.

HORNE’s valuation analysts serve clients in many industries. While this list is not exhaustive, the following is a sample of industries served: